Automotive Personnel founder and chief executive officer Don Jasensky offered a strategy so finance companies and other employers can handle one of the most challenging portions of the hiring process — the potentially large chasm between the salary offered and the compensation expectations of the top candidate.
Jasensky began by emphasizing to management that there should be no surprises when you offer a pay plan to a candidate.
For most candidates there is a direct relation to their comfort level with the variable proportion of the pay plan to the amount of base salary they need,” said Jasensky, who established his human resources firm in 1989. “If a candidate isn't certain how much they are likely to make with the variable portion, they will want more in salary.
“Over the years, we have seen companies get irritated with a candidate, thinking that they are offering a terrific pay plan where the candidate can make a significant jump in total income because of the generous bonus or commission plan,” he continued. “However — and this in very important — if the candidate does not understand the bonus plan, they may be mentally plugging in the wrong numbers and seeing the pay plan much differently.”
To rectify the situation, Jasensky, a longtime board member of the National Automotive Finance Association, offered what he insisted is a simple solution.
When making the offer, Jasensky stressed that management must explain the pay plan, then show what this pay plan would yield based on the previous 12 months. He said this process will pinpoint an exact number.
Then, Jasensky recommended that hiring officers explain that, “We are not bringing you on to keep things at status quo. We want to see a 15-percent increase in sales.”
Candidates could review a pay plan based on:
• Modest increase of 10 percent
• Hitting target of 15 percent
• Outperforms the target and hits a 20-percent increase
Jasensky closed with this takeaway.
“The better the candidate understands the variable portion the more likely he will accept your offer, so take the time to explain it,” said Jasensky who can be reached at (216) 226-8190 or Don@AutomotivePersonnel.Careers.